Commodity Online reported that India based leading commodity bourse, National Commodities and Derivatives Exchange has achieved yet another milestone of having one of the most successful steel contract in the world.

The exchange maintained that the average daily traded volumes are in the range of 20,000 tonnes vis à vis the last 4 years corresponding figure of 9,000 tonnes.

Mr Ramesh Iyer vice president at NCDEX said that "NCDEX has always striven to improve the participation of the steel sector value chain by constantly taking feedback from the participants and thereby continuously improvising on the contract specifications over the last 5 years."

NCDEX had launched its steel futures contracts on March 5th 2005. Since then it has been able to attract secondary steel sector value chain participants viz the Mild Steel Ingot/Billet manufacturers, sponge iron producers, re-rolling mills, steel consumers and traders. The active participation by these value chain participants has resulted in the NCDEX steel futures contracts gaining ground over the last five years since its launch, the exchange said in a statement issued on June 4th 2010.

The open interest of all the steel long contracts is now over 100,000 tonne vis à vis the open interest at 20,000 tonne during Jan 2009. Similarly the physical stocks of MS Ingots and Billets at all the accredited warehouses stand at 65, 500 tonne vis à vis 10,000 tonne a year ago.

(Sourced from Commodity Online)